Question 1

How to calculate EMI for home loan?

Accepted Answer

EMI is calculated using the formula: EMI = P × R × (1+R)^N / ((1+R)^N – 1), where P = Loan Amount, R = Monthly Interest Rate (annual rate ÷ 12 ÷ 100), N = Tenure in months. Use our free EMI Calculator at whatismybudget.com for instant results with full amortization schedule.

Question 2

What is SIP and how does SIP calculator work?

Accepted Answer

SIP (Systematic Investment Plan) is a method of investing fixed amounts in mutual funds monthly. Our SIP Calculator uses the formula: FV = P × ((1+r)^n − 1) / r × (1+r) to project your wealth growth. It supports step-up SIP and one-time lump sum investments.

Question 3

Which is better — new tax regime or old tax regime?

Accepted Answer

It depends on your deductions. If your total deductions (80C, 80D, HRA, home loan) exceed ₹3-4 lakhs, old regime may save more. If deductions are low, new regime with ₹12L rebate limit and ₹75K standard deduction is usually better. Use our Tax Calculator to compare both instantly.

Question 4

Should I prepay home loan or invest in SIP?

Accepted Answer

If your loan rate is above 10%, prepaying saves more. If below 9%, SIP at 12%+ returns may beat loan interest. The smartest approach is splitting: part prepayment + part SIP. Use our SIP vs EMI calculator to compare both scenarios with your actual numbers.

Question 5

How much tax can I save under Section 80C?

Accepted Answer

Section 80C allows deductions up to ₹1,50,000 per year under the old tax regime. Eligible investments include ELSS mutual funds, PPF, EPF, life insurance, home loan principal, tax-saving FDs, and NPS (additional ₹50K under 80CCD). This can save up to ₹46,800 in taxes (30% slab).